The chief executive of Commonwealth Bank of Australia (CBA) has bucked the trend of wealth rivals by admitting he is pleased with the performance of the company's wealth management business.
CBA chief Ian Narev told a briefing for the company's first quarter results yesterday that the bank feels "good about the performance of the business".
"There were improved investment markets over the period, an investment performance we were pretty happy with. Overall, we did have good growth in the quarter and good net flows," Narev said.
Narev did note that focus on profitable growth still remains.
"These are tough businesses in these markets... [we] recognise that while there is volatility in the market, there will be volatility in this business," he said.
In the quarter period ending 31 March, CBA's wealth management arm achieved 6.2 per cent growth of its funds under administration (FUA), citing improved investment markets and performance.
The division also achieved $626 million of netflows into FirstChoice and Custom solutions.
Company focus remains on profitable growth, productivity and preparing for regulatory and legislative change, it said.
Narev's comments come in stark contrast to those made by ANZ chief Mike Smith, who last week, said he was "somewhat frustrated" by the traction made in the wealth business.
"I feel that because we have got a disparate set of businesses that make up that wealth business in total, it has actually become somewhat fractured and difficult to manage," he said.
